Shopify offloads logistics business to Flexport in strategic shift

Shopify: Firstly we study about, what is shopify and how does it work?

Shopify is a full-service commerce platform that allows you to launch, grow, and manage a business.

You can do the following with Shopify:

  • Create and personalise an online store.
  • Sell on the web, mobile, social media, online marketplaces, brick-and-mortar venues, and pop-up shops.
  • Control your products, inventory, payments, and delivery.

Because Shopify is entirely cloud-based and hosted, you won’t have to worry about upgrading or maintaining software or web servers. This allows you to access and manage your business from nearly any location, even your mobile device.

Shopify offloads logistics business to Flexport in strategic shift
Jonathon Bayme, CEO of Theory11

In a strategic shift:-

Shopify offloads its logistics business to Flexport.

On Thursday, It Inc announced that it has sold its logistics division, which it had been building over the past few years. This is a change from their previous strategy of investing heavily in delivery networks. The sale includes a company called Deliverr Inc, which they bought for $2.1 billion less than a year ago. They sold the logistics unit to a company called Flexport in exchange for a 13% share in their company, which Shopify had invested in before.

Shopify announced the partnership with flexport:-

Shopify and Flexport are working together more closely to help Shopify compete against big e-commerce companies like Amazon and Walmart. In February, they announced a partnership which means that people who sell things on this can use Flexport to send their products from other countries to their warehouses. It has also invested in Flexport.

The president of Shopify

Harley Finkelstein, the president of Shopify said in an interview that the company had been working on developing their own fulfillment and logistics services. However, they realized that they could provide these services better by working together with Flexport. Finkelstein referred to this as a “side quest” that they had embarked upon.

Shopify offloads logistics business to Flexport in strategic shift
Harley Finkelstein, the president.


Flexport, which topped last year’s , has become one of the most valuable logistics startups after raising roughly $2.3 billion to date. Last year, there were problems in the global economy because goods couldn’t move easily from one place to another. Flexport helped by offering services to move things by sea, air, truck, and train, which became very important.


During an interview, Clark mentioned that Flexport’s purchase will help them expand the shipping services they can provide to Shopify sellers and other e-commerce businesses. “The big difference between what we’re going to offer, and an Amazon or maybe a Walmart logistics or some of the other places offer, is this isn’t just for one system or store or platform,” Clark said. “We have very much the same vision that It has. We’re just about the success of the merchant and our customers, and we don’t care if they sell in their stores or on Amazon or on Walmart.”

In short, Flexport is going to be the official logistics provider for Shopify, which is an online shopping platform. It will use Flexport to help make sure that customers receive their orders within one or two days. This is similar to what Amazon promises with its Prime delivery. Iy will also continue to have its own app, called the Shopify Fulfillment Network, that merchants can use to manage their logistics process. Shopify will be releasing its earnings report for the first quarter of the year on Thursday.

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